Multifamily Overbuilding in SLU?
There is always the possibility of overbuilding any market, Holland Partner Group CEO Clyde Holland tells us (second from left, the only one in a proper gentleman's suit). Clyde, who will also be a speaker at our Future of South Lake Union event on Nov. 11, believes that it isn’t likely for SLU. “In looking at South Lake Union and Downtown Seattle, we see the crest of product deliveries in 2015, followed by much lower levels of production,” he notes. Higher costs, fewer available sites, and the significant increase in impact fees being assessed for affordable housing will slow building down.
On the demand side, Clyde adds, it’s estimated that 50,000 jobs will be added to Seattle over the next five years, more or less. If 35% of them rent apartments, he says, the market will be in balance. If 40% of them rent, there will be a landlords’ market. “If 50% or more of them rent, you'll wish you bought in at today’s pricing,” he says. Pictured: The 284-unit Union SLU, one of Holland’s developments in the neighborhood, near the Amazon.com and Gates Foundation campuses. Sign up for The Future of South Lake Union event.